DAVOS 2013: Lipsky - worst is over for Europe

Jan. 23 - Former IMF deputy chief says it's reasonable to assume Europe has turned a corner, but financial risks remain and could take their toll on confidence.

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Stall which Russia arm. Is it -- at the Helm of the G-20. There they're working hard it's a real challenge. We should come back to that because after all the G-20 leaders process was the principal. Institutional innovation post crisis. And there's a question of whether there's enough dynamism left in that effort this will be a real challenge I mean Russian authorities. That's been there's been a lot of criticism -- it do you think there's any sign that hasn't agenda. Or it's actually -- and interest and anything other than not surprising itself. It has an agenda. Go back to November 2008 the original G-20 leaders' summit set three key goals restore global growth. Reform of the global financial system and reform the international financial institutions. Each one of those remains a work in progress unfinished business and they need to focus on those elements. If anything the G-20 agenda has become too overloaded and that's why hasn't gotten so much. All right so you sound more to -- -- monopoly on this. All right let me move on we mentioned in the headlines. The dressing we've we've we're gonna get this four month XX and citizens arm it's hard not to be cynical about this this this -- -- the -- Well it's I don't know what -- cynical means in this context. As -- what was important. Is that we get past the the potential. -- roadblocks that could have really represented. A big. Problem for the US economy you're -- your -- DC you know these class to Julie Julie Julie we get costs. We're -- pass a debt ceiling because I think because it -- it's -- no one's interest to cause a problem here. The next challenge is going to be to set a course on spending. But after all what just happened. Was the bush tax cuts were made permanent for the vast majority of taxpayers -- that says that the there isn't a lot of revenue raising in the new measures. So the next the next question will be okay turning to spending. -- they're not gonna looks it looks as if they're not gonna try to use the debts and as the break point. I -- 100 as a mobile gonna jump around don't look at that the Europe Chrysler people saying this crisis in overdrive he has now come in and and that's. Touched on -- out as well is an insult to the record number of unemployed processor. Well I would they would want to speak on behalf of mr. drug use -- to explain his -- -- -- not just I don't know what is the target and everyone who sang it well from his point of view. There's you as you pointed out in your intro just a year ago there were questions and serious questions raised about the sustainability of the Euro zone. Those seem to have faded for now and the focus will go back to producing better economic results through structural reforms in the -- -- we've had a vote. I hope so there's still risks there are real this was a man -- rather than main risk right now is that you you end up with a renewed sense of financial problems in the Euro zone. That drained away confidence again. But if that it seems to me it's reasonable to think that we're past that.